Federal Court Lifts Trump’s Foreign Aid Freeze, $2B Must Be Paid

6 Mar at 8:23 pm

2266 posts

Federal Court Lifts Trump’s Foreign Aid Freeze, $2B Must Be Paid \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ A federal judge has ordered the Trump administration to release nearly $2 billion in frozen foreign aid by Monday, ending a six-week funding halt that disrupted USAID and State Department programs. The ruling follows a Supreme Court decision rejecting the administration’s attempt to block the funds. The case is part of an ongoing legal battle over Trump’s efforts to cancel billions in foreign aid contracts.

Judge Orders Release of Frozen Foreign Aid: Quick Looks

$2 Billion Must Be Paid – The ruling forces Trump’s administration to release withheld USAID funds.
Six-Week Freeze Ends – The halt had led to layoffs and service cuts worldwide.
Legal Battle Continues – The case is ongoing as the administration seeks to terminate more contracts.
Supreme Court Involvement – The high court rejected Trump’s bid to maintain the funding freeze.
Foreign Aid Cuts – Over 5,800 USAID contracts and 4,100 State Department grants were canceled.

Deep Look

Judge Orders Trump Administration to Release $2 Billion in Frozen Foreign Aid

In a major legal blow to the Trump administration, U.S. District Judge Amir Ali ruled on Thursday that the federal government must release nearly $2 billion in frozen foreign aid by Monday. The ruling lifts a six-week funding halt that had disrupted critical USAID and State Department programs, leaving organizations worldwide scrambling to maintain services.

The decision follows a high-stakes legal battle over President Donald Trump’s January 20 executive order, which froze all foreign aid spending. The administration had argued that the president has broad discretion over foreign policy, including aid distribution, but aid groups and businesses sued, claiming the freeze was unconstitutional and had devastating consequences.

With billions more at stake and an ongoing review of 90% of USAID contracts worldwide, this ruling marks only the beginning of a broader legal fight over the future of U.S. foreign assistance.

Court Rejects Trump’s Justification for Aid Freeze

Judge Ali’s ruling was accompanied by sharp criticism of the administration’s legal reasoning, particularly its claim that presidential authority overrides Congress-approved spending.

“It would be an earth-shaking, country-shaking proposition to say that appropriations are optional,” Ali said in court.

Ali challenged government lawyer Indraneel Sur to provide a constitutional justification for freezing funds that Congress had already approved, pressing him for direct evidence in the U.S. Constitution.

“The question I have for you is, where are you getting this from in the constitutional document?” Ali asked.

His skepticism aligns with a Wednesday ruling by the Supreme Court, which rejected the administration’s attempt to maintain the freeze and ordered Ali to clarify how quickly the government must release funds.

Thursday’s ruling requires immediate payment for completed projects but leaves open questions about whether the administration can proceed with terminating additional USAID contracts.

Origins of the Foreign Aid Freeze

President Trump’s January 20 executive order halted all foreign assistance spending, blocking payments for programs ranging from global health initiatives to infrastructure projects.

The administration later claimed it had shifted from a total freeze to a review process, replacing the blanket ban with individualized determinations. However, this still led to massive cuts, including:

5,800 USAID contract cancellations
4,100 State Department grant terminations
Nearly $60 billion in total aid funding halted

These sweeping reductions sparked lawsuits from nonprofits and businesses reliant on USAID funds, arguing the cuts violated congressional authority and disrupted critical global programs.

The legal battle intensified as thousands of workers were laid off due to stalled projects, and key programs in disaster relief, education, and economic development were abruptly shut down.

Global Impact: Aid Groups Scramble as Funding Halt Takes a Toll

The six-week funding freeze had severe humanitarian and economic consequences, affecting millions of people worldwide who depend on U.S. assistance.

Among the hardest-hit programs:

Global Health Initiatives – Funds for HIV/AIDS treatment, malaria prevention, and maternal health services were halted, disrupting lifesaving medical programs.
Disaster Relief Efforts – USAID-funded recovery programs in earthquake and flood-affected regions were put on hold, delaying urgent assistance.
Food Security and Nutrition – Agricultural development grants that help farmers in developing nations combat hunger were suspended indefinitely.
Education and Economic Development – Schools and job training programs funded through USAID and State Department grants were forced to cut services.

Many organizations laid off staff and shut down operations, leading to a ripple effect of economic instability in already fragile regions.

Trump’s Broader War on Foreign Aid

The funding freeze is just the latest chapter in Trump’s long-running efforts to slash foreign aid. Throughout his presidency, Trump has:

Proposed deep cuts to USAID and State Department budgets in multiple federal budgets.
Threatened to eliminate funding for the World Health Organization (WHO) during the COVID-19 pandemic.
Redirected aid money to fund border security initiatives.

The administration’s ongoing legal strategy seeks to permanently eliminate many USAID contracts and reduce America’s role in global development.

While foreign aid makes up less than 1% of the federal budget, Trump and his allies have argued it should be dramatically scaled back or redirected toward domestic projects.

Critics, however, warn that such cuts damage U.S. influence abroad, hurt diplomatic relations, and create security risks by destabilizing fragile regions.

What Happens Next?

While Judge Ali’s ruling forces the Trump administration to pay $2 billion in frozen aid, the broader legal battle is far from over.

Key questions remain:

Will the administration appeal? – Trump’s team could seek a delay or reversal of Ali’s ruling, extending the legal fight.
What about the rest of the canceled contracts? – With tens of billions in aid still in limbo, additional lawsuits may challenge the administration’s next moves.
Could Congress intervene? – Lawmakers who oppose the cuts may introduce legislation to override Trump’s executive order.

As courts, aid organizations, and the administration continue to battle, the fate of USAID’s global network hangs in the balance.

For now, foreign aid programs can resume, but the long-term future of U.S. international assistance remains uncertain.